Information Sources & Strategies Results of an international empirical study AXA ART Survey 2017 art & lifestyle Evaluating Contemporary Art
Evaluating Contemporary Art
Mar 30, 2023
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Information Sources & Strategies Results of an international empirical study AXA ART Survey 2017
art & lifestyle
Evaluating Contemporary
Art
Foreword
Even to the specialist eye, the workings of the contemporary art market are shrouded in mystery. At any given time, the value of any piece appears to be based on a complex interaction of intangible factors – from the subjective judgments of influential tastemakers to the current brand-recognition factor of the artist concerned. Aesthetic quality – normally a touchstone for measuring value – often trails in last in a capricious evaluation process.
For collectors and art market professionals alike, this stubborn lack of transparency presents a serious problem. Without any reliable guidance, how is it possible to invest in the contemporary art market with any confidence? What is anything ever really worth, and why?
It’s a critical question for us at AXA ART as much as it is for our clients and partners. So to shed some light on the issue, we commissioned a new study in collaboration with the University of Kassel. Following on from the acclaimed AXA ART Collectors’ Survey, the results – drawn from an international survey of art experts –represent the first serious academic analysis of the inner workings of the global contemporary art market. Our aim is to provide an objective and balanced guide to understanding contemporary valuation, in all its complexity.
In addition to demystifying the evaluation process, this study also incorporates a listing of the best online and offline indexes which buyers can access for specialist information on current artists, their market reputation and sale prices. This is important because different indices address different purposes; so we have endeavored to compile a comprehensive range that meets all needs.
We hope you find this survey both insightful and supportive, and that by lifting the veil on the contemporary art trends and values, it enables you to approach the market with fresh knowledge and confidence. My personal thanks and those of all of us at AXA ART go out to Prof. Dr. H. Dieter Dalhoff, whose expert scientific direction has been invaluable in bringing this research to publication.
AXA ART Survey 2017 Evaluating Contemporary Art
Kai Kuklinski Global CEO of AXA ART
“For many, price is key – the more expensive, the more important. I try to advise all young artists not to offer
their works at low prices, for then they will have no value. For collectors, price is just an indication of what they might
have to spend, or where they can start to bargain - in order to get the best deal for an object they’ve already decided to buy.”
Auction House Representative
AXA ART Survey 2017 Evaluating Contemporary Art
“Art indices give only clues – they often falsify because they do not keep the market and art value apart.
Today large collectors and auction houses are the great manipulators of the art market. Indexes do not reflect truths.
It’s like buying with the ears. Indexes do not reflect truths, they reflect only market value. All indices have weaknesses,
as they highlight specific aspects that need to be questioned.”
Gallerist
Often provocative, sometimes outrageous, but always pushing at the boundaries, contemporary art polarizes opinion, evoking strong reactions from devotees and detractors alike. Its unerring ability to stir up controversy has spawned a thriving and fascinating global market, which is simultaneously incredibly complex and – at least to the outsider – virtually impenetrable.
Until now, economic science has not attempted a definitive analysis of how the contemporary art market works. This study, which summarizes the results of an international empirical survey, aims to remedy that omission, by viewing the market’s core processes through the prism of behavioral science.
Specifically, we address the following issues: • What are the relevant information and evaluation tools,
and how are they used? • What are the criteria for evaluating contemporary art? • What is the role of the price? • How do the evaluation processes work in practice? • Are art indexes and databases the solution to the problem of evaluation?
To answer these questions, we first examine the structure of the contemporary art market and offer a practical survey of existing information sources and evaluation tools.
This is followed by the results of our survey, for which we interviewed art experts from various countries about their information and evaluation strategies. The results are interesting – and, in part, surprising.
Prof. Dr. H. Dieter Dahlhoff, University of Kassel
Kassel, November 2017
A. The market for
contemporary art As any serious investor or art market professional can testify, the market for contemporary art is extraordinarily complex. Unlike the markets for other artworks (such as old masters or antiques), it is actually two separate markets, locked together in a sometimes uneasy relationship. On the one hand is the primary market, where fresh works are sold for the first time, and on the other, the secondary market, where artworks are resold. Most contemporary art market stakeholders – artists, gallerists, auction houses, art dealers, collectors and museums, among others – therefore wear a variety of hats, acting as sellers and/or buyers, depending on the market in question.
Initially, fresh artworks are offered on the primary market: private or corporate collectors, institutions, art dealers or museums buy “fresh” works – in most cases from galleries that collaborate with specific artists, or directly at the artist’s studio – for a fixed (and usually undisclosed) price. Any such works that are then resold appear on the secondary market, traditionally via auction houses or art dealers, which commonly deal in works that have been sold once or several times before.
The market for contemporary art
Art societies
Information providers
Secondary market • Collectors • Art dealers • Auction houses • Art fairs • Galleries
Se lle
Contemporary art: a complex market
Since the primary end of the contemporary art market is by nature opaque, market observers play a crucial role in advising and informing both collectors and fellow professionals, either via (online) information services or through journalistic channels. They head a long list of influential voices that include art academies, museums and exhibition spaces, art societies, donors/ sponsors/patrons, art consultants, curators, specialist art carriers, art insurers and many others.
In contrast to the primary market, prices on the secondary market develop more transparently via supply and demand, pretty much as they do in any other mature market. This, therefore, need not detain us too long; it is the mysteries of the primary market that concern us here.
“In today’s art world, critical consensus has less relevance in creating a hierarchy of value. This is especially true in contemporary art where
we have a condition of pluralism – anything can be art – and where a huge number of artists, galleries and collectors are participating.”
Art Expert
6 7
AXA ART Survey 2017 Evaluating Contemporary Art
“Price and value are two completely different elements. The price of an artwork does not define its value.”
Private Collector
“Although price should not be the ultimate measure of value, it all to often assumes an inflated importance, due to interested
parties having no other means of judging a work’s worth.”
Dealer
The value of art: quality, reputation and price
For many art lovers and art market professionals, the familiarities of mainstream fine art represent something of a comfort zone. Any debate about quality and value has long been settled (both by expert opinion and market consensus), and the prudent investor can look forward over time to a steady, if not necessarily spectacular, appreciation in value.
Contemporary art isn’t like that. In whatever guise it takes – and individual pieces differ enormously in form, content and quality – its essence resides in the challenge of its originality. And if no piece bears comparison to any other, then every new work demands individual appraisal. When a contemporary work is offered for sale for the first time, list price is absolutely no guarantee of value – either aesthetic or monetary. Aside from artistic quality, the work’s size, medium and exhibition presence also come into play, as does the prevailing market environment and the current “buzz” around the artist in question.
There is, in fact, little in the way of solid ground here. Primary market value is largely a speculative construct, based on a multitude of influences interacting within a complex system, without which it would be impossible to place a value on contemporary work at all.
In the simplest terms, it comes down to a combination of aesthetic judgment, artist profile and market asking price, all three of which exercise their own competing – and sometimes conflicting - pull on any notion of true value (see diagram).
Quality/aesthetic value: Throughout the history of western art, we have fairly consistently held to the belief that the value of any piece is at heart determined by its aesthetic quality – a belief largely supported by the weight of expert opinion delivered by curators, critics, art historians and the like. The volatility of the contemporary art scene actively supplants this established order with controversy and confusion, with experts, museums, gallery owners and artists sometimes violently disagreeing as to what constitutes true artistic achievement.
Aside from measurable aspects such as state of preservation, scarcity and provenance, every other element of judgment concerning quality and originality is invariably subjective, and anything approaching a consensus takes years to evolve. So any foray into the market is inevitably something of a gamble. As opposed to being swayed by impulse, the wisest heads take stock of the collective balance of opinion before reaching for their chequebook.
Reputation/brand value: It may sound a little dispiriting but, as in any other avenue of the arts, a little public profile goes a long way. A contemporary artist who has either cultivated a brand profile or whose work has earned a reputation will always command more market attention than their more obscure counterpart. It’s simply that public recognition – however acquired – serves as an indicator of marketability and reduces the risk of a bad investment.
Reputation is an organic creature, fed by a multi-tiered process of social communication and a vast, complex network of direct and indirect endorsements. Art prizes, awards and positive reviews all play a part, as does being in the right exhibitions, or collaborating with well-renowned institutions and collections. The artist’s brand, once established, becomes self-sustaining – it acts as a guideline for buyers and helps to increase the valuation of works, which in turn further increases the brand profile.
Price/market value: The combined effect of assorted buying processes and opaque market structures has created an art market in which prices can veer wildly between extremes. As often as not, the monetary value ascribed to a work of art has as much to do with the buyer’s expectations, market knowledge and personal taste as it does with the actual quality of the work or reputation of the artist. Quite commonly, the so-called Veblen-Effect comes into play: as when a buyer of any extravagantly priced object is persuaded of its quality simply by virtue of how much they need to pay for it. Art historian Wolfgang Ullrich coined the term Siegerkunst – winner’s art – to describe such vanity purchases, acquired as ostentatious symbols of luxury and prestige.
Evaluation criteria for contemporary art
price/ market value
quality, reputation and price
Evaluation tools for contemporary art: a practical guide
B. Information sources
The three valuation criteria for a contemporary artwork – quality, reputation and price – are intangible and subjective measurements that can change overnight. So how do experts themselves arrive at their own judgments of quality? What attributes or achievements distinguish a world-class artist from a middling exponent? How fast do new works appreciate – and is their market pricing appropriate at all?
There are no ready-made answers here. It is up to individuals to do their own homework. In the ensuing hunt for clues, professional evaluation tools – both online and printed – can provide essential insight and guidance in the following areas:
1. Information: news and facts about the current art market 2. Reputation: rankings which measure the current standing of
artists by scoring systems 3. Price: data banks with auction results and price hierarchies of
contemporary artists.
Quality: A work of contemporary art is not like a new car or washing machine. It can’t be product tested, reviewed against competitors or benchmarked for quality. The multitude of factors involved in determining its value – many of which are subjective – render expert judgment and guidance all the more necessary. Here again, collectors and market professionals have recourse to an array of online services and magazines, ranging from reviews and art market news to lists of collectors and databases on artists, works and collectors.
Reputation: Artist rankings, some of which have existed for decades, are compiled from a multitude of data. An artist’s ranking is assessed through a combination of scores across various categories – such as participation in important exhibitions, sales to important institutions, reviews in art magazines or art prizes etc. How these rankings actually work is, however, something of a trade secret, as artist rankings do not disclose the algorithms behind their valuations (rare exceptions include Art Report and – in part – Kunstkompass).
Price: Does the gallery asking price for a particular work of art accurately reflect the final price paid? Primary market prices often remain undisclosed, and artists, collectors, museums and gallerists all have their own reasons for being reluctant to reveal actual transaction figures. On the secondary market, in contrast, information on prices is available: auction results, which reflect supply and demand, are good indicators for the price development of specific artists. Specialized data banks readily offer such information, often even including price curves and purchasing recommendations, in a similar way to stock market information services.
The following table acts as a practical guideline for choosing sources of information on contemporary art; it lists exemplary evaluation tools which can offer the non-expert some much- needed guidance in estimating the quality, reputation and prices of contemporary artists.
1. News: information about artists and the art market
Name oNlINe/offlINe fee? CoNteNtS
Larry’s List Online: larryslist.com no** Database with 3,500 profiles of international collectors; additional information for and about art collectors
ArtSy Online: artsy.net no Database with information on 40,000 artists, online art market and news on art
Independent Collectors
Online: independent- collectors.com
no Website for collectors of contemporary art; publishes the BMW Art Guide with portraits of ca. 250 private art collections
ArtTactic Online: arttactic.com no** Information service on the art market; publishes market and country reports, individual analyses about specific artists etc.
Artforum Magazine, online: artforum.com
yes* US contemporary art magazine, founded 1968, 10 issues per year
ARTNews Magazine, online: artnews.com
yes* Leading US art magazine, first published 1922, 4 issues per year
Frieze Magazine, online: frieze.com
yes* British contemporary art monthly; organizes the Frieze art fairs in London and NY
artpress Magazine, online: artpress.com
yes* French-English monthly on contemporary art; first published in 1972
Art Newspaper Newspaper, online: theartnewspaper.com
yes* Art newspaper, published 9 to 22 times a year in English, Italian, French, Russian and Chinese
Parkett Magazine, online: parkettart.com
yes* English/German magazine on contemporary art; 4 issues per year, edited in collaboration with artists
art – das Kunstmagazin
Magazine, online: art-magazin.de
yes* Monthly German art magazine with portraits, exhibition reviews and a guide on current art events
Monopol Magazine, online: kunstforum.de
yes* German bimonthly on contemporary art, founded in 1968, 6 issues per year
Kunstzeitung Newspaper no German monthly art newspaper, distributed free of charge in museums and exhibition spaces, circulation 200,000
Kunst und Auktionen
Magazine, also available as e-paper
yes* Magazine on the art and auction market, edited by the German monthly Die ZEIT; 20 issues per year
This short survey represents only a limited selection of the many art magazines and websites devoted to contemporary art. The above information was carefully researched as of June 2017; we assume no liability for changes or editorial errors.
Information, news and articles on the art market are also published by the websites Art Report, ArtReview, Artnet and Blouinartinfo (see 2. and 3. below).
* only magazine price / ** limited access free of charge
1110
The most important evaluation tools: art news, artist rankings, price databases
AXA ART Survey 2017 Evaluating Contemporary Art
2. Reputation: rankings of contemporary artists
Name oNlINe/offlINe fee? CoNteNtS
no**
yes*
Online ranking of ca. 100,000 international artists, updated weekly; scores according to presence in museums, exhibitions and galleries; published yearly in the magazine Capital; with a databank of auction prices
Art Report Online: art-report.com no Online ranking of ca. 65,000 international artists; scores depend on presence in exhibitions, network and auction prices; data on individual artists available
ArtReview Power 100
Online: artreview.com no Ranking of the 100 most influential personalities of the art world (artists, gallerists, collectors, curators, museum directors, theorists etc.)
Kunstkompass Offline, published in the magazine Bilanz
yes* First published in Germany in 1970; yearly ranking of international artists (about 25,000 artists are evaluated); scores are allocated according to presence in exhibitions, purchases by museums, reviews and art prizes
Trend- Kunstranking
Magazine, online: trend.at
yes* Ranking of the 100 best Austrian artists on the basis of a poll among experts
Bilanz-Künstler- Rating
Magazine, online: kunstforum.de
yes* Ranking of the 20 most important Swiss artists, selected by a jury of 44 experts
“The price represents the value a work has on the market. A very good artistic work can nevertheless be unsaleable
or commercially useless.”
* only magazine price / ** limited access free of charge
Name oNlINe/offlINe fee? CoNteNtS
Artprice Online: artprice.com no** Database with ca. 30 million auction results and information on 650,000 artists; rankings of prices and sales volumes; various analytic tools available
Artnet Online: artnet.com no** Database with ca. 10 million auction results and information on 320,000 artists; online art market, gallery representation and auction house; art news
Blouin Art Sales Index Online: art sales index. artinfo.com
no** Database (founded in 1922) with ca. 6 million auction results of 500,000 artists; ranking “100 Top Artists”; online art news: blouinartinfo.com
Sotheby’s- Mei-Moses-Index
No public access (no) Database with 45,000 works sold on the secondary market several times; currently available only for Sotheby’s clients
Skate’s Art Market Research
Online: skatepress.com
no Information service on the art market, publishes industry reports, sales data, artist rankings, lists of the most expensive works etc.
ArtRank Online: artrank.com
no Quarterly artist ranking with tips for collectors (“buy now”, “sell/peaking” etc.), depending on presence, prices and market saturation
“If you don’t know the price, you don’t know what’s to pay or whether you can sell it.”
Private Collector
C. Evaluation strategies: six empirical results
15
The goal of the study
Given the complex structure of the contemporary art market, several questions regarding the participants’ strategies for collecting information and evaluating art arise: Which sources of information do they use? What is the underlying concept of
“value”? What role does price play? How does the evaluation process (“art journey”) work in practice? Which evaluation tools do the experts prefer to use?
14
The participants: collectors, dealers, experts
In 2017, a total of 127 carefully selected art market experts were interviewed about their approaches to gathering art market information in an explorative study. The results published here were derived on the basis of that sample. The participants were:
International: Nearly two thirds of the interviewed experts came from Germany and Austria, with the US, France, the UK and the Netherlands also featuring prominently. In total, experts from 13 different countries took part in the survey.
Groups of interviewees
auction houses 4%
art societies 3%
“The price information…
art & lifestyle
Evaluating Contemporary
Art
Foreword
Even to the specialist eye, the workings of the contemporary art market are shrouded in mystery. At any given time, the value of any piece appears to be based on a complex interaction of intangible factors – from the subjective judgments of influential tastemakers to the current brand-recognition factor of the artist concerned. Aesthetic quality – normally a touchstone for measuring value – often trails in last in a capricious evaluation process.
For collectors and art market professionals alike, this stubborn lack of transparency presents a serious problem. Without any reliable guidance, how is it possible to invest in the contemporary art market with any confidence? What is anything ever really worth, and why?
It’s a critical question for us at AXA ART as much as it is for our clients and partners. So to shed some light on the issue, we commissioned a new study in collaboration with the University of Kassel. Following on from the acclaimed AXA ART Collectors’ Survey, the results – drawn from an international survey of art experts –represent the first serious academic analysis of the inner workings of the global contemporary art market. Our aim is to provide an objective and balanced guide to understanding contemporary valuation, in all its complexity.
In addition to demystifying the evaluation process, this study also incorporates a listing of the best online and offline indexes which buyers can access for specialist information on current artists, their market reputation and sale prices. This is important because different indices address different purposes; so we have endeavored to compile a comprehensive range that meets all needs.
We hope you find this survey both insightful and supportive, and that by lifting the veil on the contemporary art trends and values, it enables you to approach the market with fresh knowledge and confidence. My personal thanks and those of all of us at AXA ART go out to Prof. Dr. H. Dieter Dalhoff, whose expert scientific direction has been invaluable in bringing this research to publication.
AXA ART Survey 2017 Evaluating Contemporary Art
Kai Kuklinski Global CEO of AXA ART
“For many, price is key – the more expensive, the more important. I try to advise all young artists not to offer
their works at low prices, for then they will have no value. For collectors, price is just an indication of what they might
have to spend, or where they can start to bargain - in order to get the best deal for an object they’ve already decided to buy.”
Auction House Representative
AXA ART Survey 2017 Evaluating Contemporary Art
“Art indices give only clues – they often falsify because they do not keep the market and art value apart.
Today large collectors and auction houses are the great manipulators of the art market. Indexes do not reflect truths.
It’s like buying with the ears. Indexes do not reflect truths, they reflect only market value. All indices have weaknesses,
as they highlight specific aspects that need to be questioned.”
Gallerist
Often provocative, sometimes outrageous, but always pushing at the boundaries, contemporary art polarizes opinion, evoking strong reactions from devotees and detractors alike. Its unerring ability to stir up controversy has spawned a thriving and fascinating global market, which is simultaneously incredibly complex and – at least to the outsider – virtually impenetrable.
Until now, economic science has not attempted a definitive analysis of how the contemporary art market works. This study, which summarizes the results of an international empirical survey, aims to remedy that omission, by viewing the market’s core processes through the prism of behavioral science.
Specifically, we address the following issues: • What are the relevant information and evaluation tools,
and how are they used? • What are the criteria for evaluating contemporary art? • What is the role of the price? • How do the evaluation processes work in practice? • Are art indexes and databases the solution to the problem of evaluation?
To answer these questions, we first examine the structure of the contemporary art market and offer a practical survey of existing information sources and evaluation tools.
This is followed by the results of our survey, for which we interviewed art experts from various countries about their information and evaluation strategies. The results are interesting – and, in part, surprising.
Prof. Dr. H. Dieter Dahlhoff, University of Kassel
Kassel, November 2017
A. The market for
contemporary art As any serious investor or art market professional can testify, the market for contemporary art is extraordinarily complex. Unlike the markets for other artworks (such as old masters or antiques), it is actually two separate markets, locked together in a sometimes uneasy relationship. On the one hand is the primary market, where fresh works are sold for the first time, and on the other, the secondary market, where artworks are resold. Most contemporary art market stakeholders – artists, gallerists, auction houses, art dealers, collectors and museums, among others – therefore wear a variety of hats, acting as sellers and/or buyers, depending on the market in question.
Initially, fresh artworks are offered on the primary market: private or corporate collectors, institutions, art dealers or museums buy “fresh” works – in most cases from galleries that collaborate with specific artists, or directly at the artist’s studio – for a fixed (and usually undisclosed) price. Any such works that are then resold appear on the secondary market, traditionally via auction houses or art dealers, which commonly deal in works that have been sold once or several times before.
The market for contemporary art
Art societies
Information providers
Secondary market • Collectors • Art dealers • Auction houses • Art fairs • Galleries
Se lle
Contemporary art: a complex market
Since the primary end of the contemporary art market is by nature opaque, market observers play a crucial role in advising and informing both collectors and fellow professionals, either via (online) information services or through journalistic channels. They head a long list of influential voices that include art academies, museums and exhibition spaces, art societies, donors/ sponsors/patrons, art consultants, curators, specialist art carriers, art insurers and many others.
In contrast to the primary market, prices on the secondary market develop more transparently via supply and demand, pretty much as they do in any other mature market. This, therefore, need not detain us too long; it is the mysteries of the primary market that concern us here.
“In today’s art world, critical consensus has less relevance in creating a hierarchy of value. This is especially true in contemporary art where
we have a condition of pluralism – anything can be art – and where a huge number of artists, galleries and collectors are participating.”
Art Expert
6 7
AXA ART Survey 2017 Evaluating Contemporary Art
“Price and value are two completely different elements. The price of an artwork does not define its value.”
Private Collector
“Although price should not be the ultimate measure of value, it all to often assumes an inflated importance, due to interested
parties having no other means of judging a work’s worth.”
Dealer
The value of art: quality, reputation and price
For many art lovers and art market professionals, the familiarities of mainstream fine art represent something of a comfort zone. Any debate about quality and value has long been settled (both by expert opinion and market consensus), and the prudent investor can look forward over time to a steady, if not necessarily spectacular, appreciation in value.
Contemporary art isn’t like that. In whatever guise it takes – and individual pieces differ enormously in form, content and quality – its essence resides in the challenge of its originality. And if no piece bears comparison to any other, then every new work demands individual appraisal. When a contemporary work is offered for sale for the first time, list price is absolutely no guarantee of value – either aesthetic or monetary. Aside from artistic quality, the work’s size, medium and exhibition presence also come into play, as does the prevailing market environment and the current “buzz” around the artist in question.
There is, in fact, little in the way of solid ground here. Primary market value is largely a speculative construct, based on a multitude of influences interacting within a complex system, without which it would be impossible to place a value on contemporary work at all.
In the simplest terms, it comes down to a combination of aesthetic judgment, artist profile and market asking price, all three of which exercise their own competing – and sometimes conflicting - pull on any notion of true value (see diagram).
Quality/aesthetic value: Throughout the history of western art, we have fairly consistently held to the belief that the value of any piece is at heart determined by its aesthetic quality – a belief largely supported by the weight of expert opinion delivered by curators, critics, art historians and the like. The volatility of the contemporary art scene actively supplants this established order with controversy and confusion, with experts, museums, gallery owners and artists sometimes violently disagreeing as to what constitutes true artistic achievement.
Aside from measurable aspects such as state of preservation, scarcity and provenance, every other element of judgment concerning quality and originality is invariably subjective, and anything approaching a consensus takes years to evolve. So any foray into the market is inevitably something of a gamble. As opposed to being swayed by impulse, the wisest heads take stock of the collective balance of opinion before reaching for their chequebook.
Reputation/brand value: It may sound a little dispiriting but, as in any other avenue of the arts, a little public profile goes a long way. A contemporary artist who has either cultivated a brand profile or whose work has earned a reputation will always command more market attention than their more obscure counterpart. It’s simply that public recognition – however acquired – serves as an indicator of marketability and reduces the risk of a bad investment.
Reputation is an organic creature, fed by a multi-tiered process of social communication and a vast, complex network of direct and indirect endorsements. Art prizes, awards and positive reviews all play a part, as does being in the right exhibitions, or collaborating with well-renowned institutions and collections. The artist’s brand, once established, becomes self-sustaining – it acts as a guideline for buyers and helps to increase the valuation of works, which in turn further increases the brand profile.
Price/market value: The combined effect of assorted buying processes and opaque market structures has created an art market in which prices can veer wildly between extremes. As often as not, the monetary value ascribed to a work of art has as much to do with the buyer’s expectations, market knowledge and personal taste as it does with the actual quality of the work or reputation of the artist. Quite commonly, the so-called Veblen-Effect comes into play: as when a buyer of any extravagantly priced object is persuaded of its quality simply by virtue of how much they need to pay for it. Art historian Wolfgang Ullrich coined the term Siegerkunst – winner’s art – to describe such vanity purchases, acquired as ostentatious symbols of luxury and prestige.
Evaluation criteria for contemporary art
price/ market value
quality, reputation and price
Evaluation tools for contemporary art: a practical guide
B. Information sources
The three valuation criteria for a contemporary artwork – quality, reputation and price – are intangible and subjective measurements that can change overnight. So how do experts themselves arrive at their own judgments of quality? What attributes or achievements distinguish a world-class artist from a middling exponent? How fast do new works appreciate – and is their market pricing appropriate at all?
There are no ready-made answers here. It is up to individuals to do their own homework. In the ensuing hunt for clues, professional evaluation tools – both online and printed – can provide essential insight and guidance in the following areas:
1. Information: news and facts about the current art market 2. Reputation: rankings which measure the current standing of
artists by scoring systems 3. Price: data banks with auction results and price hierarchies of
contemporary artists.
Quality: A work of contemporary art is not like a new car or washing machine. It can’t be product tested, reviewed against competitors or benchmarked for quality. The multitude of factors involved in determining its value – many of which are subjective – render expert judgment and guidance all the more necessary. Here again, collectors and market professionals have recourse to an array of online services and magazines, ranging from reviews and art market news to lists of collectors and databases on artists, works and collectors.
Reputation: Artist rankings, some of which have existed for decades, are compiled from a multitude of data. An artist’s ranking is assessed through a combination of scores across various categories – such as participation in important exhibitions, sales to important institutions, reviews in art magazines or art prizes etc. How these rankings actually work is, however, something of a trade secret, as artist rankings do not disclose the algorithms behind their valuations (rare exceptions include Art Report and – in part – Kunstkompass).
Price: Does the gallery asking price for a particular work of art accurately reflect the final price paid? Primary market prices often remain undisclosed, and artists, collectors, museums and gallerists all have their own reasons for being reluctant to reveal actual transaction figures. On the secondary market, in contrast, information on prices is available: auction results, which reflect supply and demand, are good indicators for the price development of specific artists. Specialized data banks readily offer such information, often even including price curves and purchasing recommendations, in a similar way to stock market information services.
The following table acts as a practical guideline for choosing sources of information on contemporary art; it lists exemplary evaluation tools which can offer the non-expert some much- needed guidance in estimating the quality, reputation and prices of contemporary artists.
1. News: information about artists and the art market
Name oNlINe/offlINe fee? CoNteNtS
Larry’s List Online: larryslist.com no** Database with 3,500 profiles of international collectors; additional information for and about art collectors
ArtSy Online: artsy.net no Database with information on 40,000 artists, online art market and news on art
Independent Collectors
Online: independent- collectors.com
no Website for collectors of contemporary art; publishes the BMW Art Guide with portraits of ca. 250 private art collections
ArtTactic Online: arttactic.com no** Information service on the art market; publishes market and country reports, individual analyses about specific artists etc.
Artforum Magazine, online: artforum.com
yes* US contemporary art magazine, founded 1968, 10 issues per year
ARTNews Magazine, online: artnews.com
yes* Leading US art magazine, first published 1922, 4 issues per year
Frieze Magazine, online: frieze.com
yes* British contemporary art monthly; organizes the Frieze art fairs in London and NY
artpress Magazine, online: artpress.com
yes* French-English monthly on contemporary art; first published in 1972
Art Newspaper Newspaper, online: theartnewspaper.com
yes* Art newspaper, published 9 to 22 times a year in English, Italian, French, Russian and Chinese
Parkett Magazine, online: parkettart.com
yes* English/German magazine on contemporary art; 4 issues per year, edited in collaboration with artists
art – das Kunstmagazin
Magazine, online: art-magazin.de
yes* Monthly German art magazine with portraits, exhibition reviews and a guide on current art events
Monopol Magazine, online: kunstforum.de
yes* German bimonthly on contemporary art, founded in 1968, 6 issues per year
Kunstzeitung Newspaper no German monthly art newspaper, distributed free of charge in museums and exhibition spaces, circulation 200,000
Kunst und Auktionen
Magazine, also available as e-paper
yes* Magazine on the art and auction market, edited by the German monthly Die ZEIT; 20 issues per year
This short survey represents only a limited selection of the many art magazines and websites devoted to contemporary art. The above information was carefully researched as of June 2017; we assume no liability for changes or editorial errors.
Information, news and articles on the art market are also published by the websites Art Report, ArtReview, Artnet and Blouinartinfo (see 2. and 3. below).
* only magazine price / ** limited access free of charge
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The most important evaluation tools: art news, artist rankings, price databases
AXA ART Survey 2017 Evaluating Contemporary Art
2. Reputation: rankings of contemporary artists
Name oNlINe/offlINe fee? CoNteNtS
no**
yes*
Online ranking of ca. 100,000 international artists, updated weekly; scores according to presence in museums, exhibitions and galleries; published yearly in the magazine Capital; with a databank of auction prices
Art Report Online: art-report.com no Online ranking of ca. 65,000 international artists; scores depend on presence in exhibitions, network and auction prices; data on individual artists available
ArtReview Power 100
Online: artreview.com no Ranking of the 100 most influential personalities of the art world (artists, gallerists, collectors, curators, museum directors, theorists etc.)
Kunstkompass Offline, published in the magazine Bilanz
yes* First published in Germany in 1970; yearly ranking of international artists (about 25,000 artists are evaluated); scores are allocated according to presence in exhibitions, purchases by museums, reviews and art prizes
Trend- Kunstranking
Magazine, online: trend.at
yes* Ranking of the 100 best Austrian artists on the basis of a poll among experts
Bilanz-Künstler- Rating
Magazine, online: kunstforum.de
yes* Ranking of the 20 most important Swiss artists, selected by a jury of 44 experts
“The price represents the value a work has on the market. A very good artistic work can nevertheless be unsaleable
or commercially useless.”
* only magazine price / ** limited access free of charge
Name oNlINe/offlINe fee? CoNteNtS
Artprice Online: artprice.com no** Database with ca. 30 million auction results and information on 650,000 artists; rankings of prices and sales volumes; various analytic tools available
Artnet Online: artnet.com no** Database with ca. 10 million auction results and information on 320,000 artists; online art market, gallery representation and auction house; art news
Blouin Art Sales Index Online: art sales index. artinfo.com
no** Database (founded in 1922) with ca. 6 million auction results of 500,000 artists; ranking “100 Top Artists”; online art news: blouinartinfo.com
Sotheby’s- Mei-Moses-Index
No public access (no) Database with 45,000 works sold on the secondary market several times; currently available only for Sotheby’s clients
Skate’s Art Market Research
Online: skatepress.com
no Information service on the art market, publishes industry reports, sales data, artist rankings, lists of the most expensive works etc.
ArtRank Online: artrank.com
no Quarterly artist ranking with tips for collectors (“buy now”, “sell/peaking” etc.), depending on presence, prices and market saturation
“If you don’t know the price, you don’t know what’s to pay or whether you can sell it.”
Private Collector
C. Evaluation strategies: six empirical results
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The goal of the study
Given the complex structure of the contemporary art market, several questions regarding the participants’ strategies for collecting information and evaluating art arise: Which sources of information do they use? What is the underlying concept of
“value”? What role does price play? How does the evaluation process (“art journey”) work in practice? Which evaluation tools do the experts prefer to use?
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The participants: collectors, dealers, experts
In 2017, a total of 127 carefully selected art market experts were interviewed about their approaches to gathering art market information in an explorative study. The results published here were derived on the basis of that sample. The participants were:
International: Nearly two thirds of the interviewed experts came from Germany and Austria, with the US, France, the UK and the Netherlands also featuring prominently. In total, experts from 13 different countries took part in the survey.
Groups of interviewees
auction houses 4%
art societies 3%
“The price information…
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